![]() ![]() The key problem here is in the low liquidity of national currencies compared with reserve currencies, as well as the macroeconomic and exchange rate risks. In practice, however, this simply doesn’t work, and only leads to even more delays in completing transactions. In theory, the ruble remains a freely convertible currency with all the necessary infrastructure for transnational payments, so there is technically nothing to stop Russian exporters from demanding payment for their goods in rubles. Turkey’s adaptability appears to be linked to the fact that Ankara is Moscow’s key partner right now in terms of parallel imports, meaning many Turkish companies will in any case be actively using rubles. “Friendly” Turkey has agreed to a partial payment for Russian gas in rubles, but neither the mechanism for doing so nor the volumes in question are yet known. ![]() For now, however, only a handful of companies have announced one-off deals fixed in rubles. Officials are counting on being able to start trading in national currencies. It’s hard to work out something more effective when there are political restrictions laid down by President Vladimir Putin on the one hand, such as his requirement for trade to be done in rubles, and the long-established reality of global trade on the other, based first and foremost on the convenience of the dollar and euro. Russia’s financial authorities are actively seeking ways around these problems, entertaining even the most outlandish ideas, but for now, the range of proposed solutions looks extremely limited and archaic. Their bank accounts in dollars and euros may be blocked, payments sent in foreign currencies take an age to be processed, and even banks in “friendly countries” are refusing to carry out transactions, citing a range of excuses. They can’t just be imported: following Russia’s invasion of Ukraine, even Russian companies that have not been directly sanctioned still run into major difficulties when trying to settle their accounts with foreign partners. Supplies are running out, and it’s impossible to replenish or replace many kinds of products. “Lukashenko is not happy with being a complete vassal to the Kremlin, and he strives to ease Russian pressure (on Minsk), in order to leave room for negotiations with the West and China,” Karbalevich said in a phone interview.The Russian economy faces an increasingly pressing problem. Valery Karbalevich said that it was important for Lukashenko to “show that he is in control of the situation,” given the recent and growing speculation about his deteriorating health. On Monday, an independent Belarusian analyst told AP that Lukashenko’s remarks marked an attempt to preserve “the remnants of (Belarusian) sovereignty and protect himself from growing pressure from the Kremlin.” “Even our enemies admit that Elvira Nabiullina very quickly dealt with economic issues in Russia and with currency issues, especially in the context of sanctions,” he said. On Monday, Lukashenko said that Belarus’ economy was hit hard by the ensuing Western sanctions, but Russian bailouts and policies adopted by Russia’s central bank have softened the blow. Last year, Moscow used Belarusian territory as a springboard to send troops and missiles into Ukraine. The opposition and the West said the vote was rigged. Russian support also helped the autocratic leader survive months of mass protests following the 2020 election that handed him a sixth term in office. ![]() 4 Indigenous children lost in jungle for 40 days after plane crash are found alive in Colombia ![]()
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